\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 11 Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) )
Performance review
On April 27, Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) released the first quarterly report of 2022, and realized a revenue of 247 million yuan in 22q1, a year-on-year increase of + 63.08%; The net profit attributable to the parent company was 45 million yuan, a year-on-year increase of + 51.48%, and the deduction of non net profit was 38 million yuan, a year-on-year increase of + 40.08%. The company continued its excellent performance and its revenue performance exceeded expectations.
Business analysis
On the revenue side, the company’s integrated stove continued to have a high outlook in the first quarter. The mode of product segmentation and the same payment and commission is implemented online. At the same time, channel investment is increased and excellent performance is achieved. According to ovicloud, the company’s online sales volume was 163.6% year-on-year in March 22 years ago, accounting for 16.1% year-on-year, with a year-on-year increase of 8.6pct; Offline dealers continue to expand and optimize, and continue to be optimistic about the high growth of follow-up income.
On the profit side, the net interest rate of 22q1 company was 18.06%, with a year-on-year increase of – 1.38%. Specifically, the gross profit margin of 22q1 was 43.7%, with a year-on-year increase of -0.7pct. It is expected to be mainly affected by the rise in the price of raw materials, and the decline has narrowed month on month. The sales expense rate was 18.6%, with a year-on-year increase of -0.5pct. The epidemic may have an impact on the advertising rhythm of offline transportation hubs, and the management expense rate was 4.4%, with a year-on-year increase of + 3.4pct. Due to the increase of equity payment expenses related to equity incentive, it remained relatively stable month on month. The Q1 R & D / financial expense ratio of the company was -0.4pct / – 0.8pct respectively year-on-year, and the expense ratio decreased during the period.
Operating capacity: in Q1, the cash received from selling goods was 290 million yuan, which was consistent with the income scale. The net cash flow from operating activities was -72.703 million yuan, mainly due to the improvement of taxes, employee compensation and accounts receivable. The balance of accounts receivable and notes receivable was 99.912 million yuan, an increase of 29.609 million yuan over the end of the previous period, mainly because the payment for goods on the e-commerce platform had not been received, the inventory was 110 million yuan, and the inventory turnover days were 68 days, which remained stable.
Profit forecast & investment suggestions
The logic of improving the penetration rate of the integrated stove industry continues to be verified. As a first-line echelon, the company is expected to fully benefit from the high growth dividend of the industry. The company has strong product power, the effect of channel and organizational change continues to be reflected, and the revenue is expected to continue to increase. We estimate that the company’s revenue from 2022 to 2024 will be 1.88 billion yuan, 2.65 billion yuan and 3.68 billion yuan respectively, with a year-on-year increase of 53.0%, 40.7% and 38.8% respectively. The company’s net profit attributable to the parent company from 2022 to 2024 is expected to be 300 million yuan, 410 million yuan and 560 million yuan respectively, with a year-on-year increase of 45.0%, 35.2% and 37.0% respectively. EPS is 2.81, 3.80 and 5.21 respectively. The current share price corresponds to PE of 21.4x, 15.8x and 11.5x respectively from 2022 to 2024, maintaining the rating of “overweight”.
Risk tips
The terminal consumption is weak, and the penetration rate is lower than expected; The risk of intensified industry competition; Risk of rising raw material prices.
